Vertical Integration by Software Giants into Manufacturing

February 28, 2012

(by Bruce Lyons)  To business strategists and industrial economists, as well as competition practitioners, it is interesting to reflect on a recent trend in vertical integration.  Google, Microsoft and even Amazon have been positioning in manufacturing, at least in part inspired by the success of Apple’s integrated business model.  Could this eventually lead to vertical silos that ossify each group’s dominance in segments of software and web retailing? Read the rest of this entry »


Merger Approval of Google-Motorola Mobility and the Failure of FRAND

February 22, 2012

(by Bruce Lyons) The European Commission and US DoJ have approved a (mainly) vertical acquisition of Motorola Mobility (MM) by Google because the specific transaction would not lessen competition.  They did so with weary resignation that it is part of the patent arms race into which they will be drawn to adjudicate in the coming months and years.  The underlying problem is that ‘fair, reasonable and non-discriminatory’ (FRAND) royalty commitments are not fit for purpose as part of standard setting agreements.  Read the rest of this entry »


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